Twitter’s board of directors has approved a provision aimed at preventing a hostile takeover that’s known in the financial world as a “poison pill,” the company announced on April 15.
The board unanimously chose to adopt the “limited duration shareholder rights plan” after an “unsolicited, non-binding proposal to acquire Twitter,” the company said.
Elon Musk, the founder and CEO of Tesla and SpaceX, offered to purchase the California-based firm for around $43 billion this week shortly after buying nearly 10 percent of the company.
Under the approved provision, any entity, person, or group acquiring 15 percent or more of Twitter’s outstanding stock in a transaction not approved by the board other stock holders will be able to buy additional shares of common stock.
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